October 21st, 2008

Legal quirk makes temporary employees harder to fire than permanent staffers

The Hungarian Outsourcing Association (HOA) has warned of anomalies in Hungary’s temporary employment practices for employees seconded to other companies, writes Világgazdaság. Among other peculiarities, firing a temporary worker is more difficult than laying off a permanent employee.

The HOA recently brought attention to problems related to this form of temporary employment in a letter addressed to Ábel Garamvölgyi, state secretary of the ministry of economy. The issue is that according to Hungarian judicial practices, if a company temporarily hiring a worker no longer needs them, their original company is required to find them a new job, pay salary for an extra month, and can only lay them off if it can prove that the search for another position was unsuccessful for 30 days. These rules are stricter than those applying to regular employment.

Another regulation making temporary employment difficult is that official employees covered by social security must be reported to APEH through the tax office’s electronic system before the employee starts working. For companies with a national network, keeping this deadline is especially difficult, as their central office often cannot be informed in time about a new employee starting work at a rural office.

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